Missives

The SECURE Act 2.0 permits $50,000 of a qualified charitable distribution (QCD) from an IRA to be used to fund a charitable gift annuity (CGA) while satisfying some (or all ) of the IRA owner’s required minimum distribution (RMD) obligation for the year. Recently an increase in the recommended CGA maximum rates may make this new opportunity to be even more attractive for donors.

Transfers-on-death designations are useful in some situations, but they are not appropriate in every case.

The IRS recently concluded that modifying a grantor Trust to add an income tax reimbursement provision that benefits the trust settlor results in a taxable gift by the trust beneficiaries.

The individual who holds a power of appointment over trust assets is generally not considered to be bound by any fiduciary duty. However, that principle may be changing.

Donor advised funds have gained the attention not only of Congress but also from the for-profit sector, which means they are being used in many new, creative, ways, e.g., as an employee benefit.

Uncashed IRA distribution checks can present problems, especially when the IRA owner also has required minimum distribution obligations at the time the check is issued.

The presence of a spendthrift clause in a Trust instrument may prevent the future modification or termination of that Trust.

An IRA cannot invest in collectibles. The IRS has recently expanded the concept of what constitutes a collectible as a prohibited IRA investment.

Let’s be honest. There is no way to separate sports from money… or taxes.

High net worth individuals with whom we work are often the targets of tax scams.